Microsoft's Internet movie service grew more than 6% in 2010, thanks to the successful Zune marketplace on the Xbox 360. Since the launch of the Zune Marketplace on the Xbox 360 in November 2009, the store has been a huge hit and well received by users.
The online service allows users to stream videos to their Xbox 360 in both standard and high definition. The Zune Marketplace offers a large catalog of movies and TV shows on-demand, with the ability to either rent or purchase videos.
The success of the store has increased Microsoft's Internet video service by 6.3% since 2009, according to isuppli.com. However, the Zune Marketplace is still second to Apple's iTunes, which still holds 64.5% of the market. Apple lost 9.9% of the market share in the last year, with services like Microsoft, Sony, Amazon, Netflix Wal-mart, and many others expanding their video libraries.
In 2010, both Sony and Microsoft managed to expand their market share by utilizing their video consoles to increase their market share. Sony and Microsoft will continue to pose a threat to Apple in 2011, by offering larger catalogs of movies and TV streamed to their consoles.